|Bid||1.74 x 2200|
|Ask||1.85 x 39400|
|Day's Range||1.75 - 1.82|
|52 Week Range||1.56 - 2.53|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.07 (3.46%)|
|1y Target Est||N/A|
Gold dipped as dollar gains strength triggered by rise in U.S. Treasury yields. Prospects of a rate hike in June will likely weigh on gold prices.
Lower platinum prices are a major concern for platinum miners in Africa. Platinum, like palladium, is used to cut down carbon monoxide emissions and as a catalyst in vehicle engines. It is also used in diesel-based generators. The platinum market has been in short supply for the last few years, and its deficit is expected to expand to a short supply of 275,000 ounces in 2018.
South African miners have traditionally traded at a discount to their global counterparts (GDX), primarily due to South Africa’s laws, labor concerns, and infrastructure challenges. Among these miners, Gold Fields (GFI) has the highest valuation multiple of 3.8x—a premium of 16.0% to the peer average. Sibanye Gold (SBGL) has a forward multiple of 3.5x—a premium of 7.4% to the peer average.
Gold’s price dipped 0.13% to $1,312.8 per ounce on May 9. The fall in gold was extended for a number of reasons, including a decrease in overall volatility and rising US Treasury rates. We’ll discuss these factors at length in the next few articles.
In April, the market’s unrest had a significant effect on precious metals and miners, leading to increased prices. The US dollar has strengthened recently, which had a negative impact on precious metals and mining stocks. The settling of the market unrest could have also caused a withdrawal of haven bids.
IAMGOLD (IAG) reported significant progress at its operations in its Essakane mine. This mine achieved record production of 109,000 ounces for 1Q18 after the delivery of record annual production of 389,000 ounces in 2017.
Usually, precious metal mining companies follow precious metals. Precious metals seem to be in the doldrums over the Fed’s decision about moving interest rates and the strength of the US dollar. The recent slump in demand for haven assets also affected the miners.
Recent market unrest had a significant effect on precious metals, which increased. However, the US dollar has strengthened recently, which has had a negative impact on precious metals. The settling of the market unrest could have also caused a withdrawal of haven bids.
The International Monetary Fund (or IMF) issued an update to its world economic outlook on the eve of IMF and World Bank meetings in Washington this week. The IMF warned that a major trade rift between the US and China could threaten global economic growth, which otherwise should rise solidly this year. The agency still maintained its forecast of 3.9% for global economic growth, which would be the fastest rate of growth since 2011.
Geopolitical tensions and lingering concerns over a trade war might reduce investors' appetite for riskier assets and fuel demand for safe-haven gold.
Thieves broke into Harmony Gold Mining Co.’s Kalgold mine Tuesday morning and stole 12 kilograms (386 ounces) of the precious metal, according to spokeswoman Lauren Fourie.
Gold, silver, platinum, and palladium increased 0.33%, 1%, 2.4%, and 4.2%, respectively, on Monday. Gold futures for April expiration were trading at $1,336.3 an ounce on Monday, April 9. The volatility in gold was at 10.4%, while its RSI level was at 59.7. Silver futures for April expiration closed at $16.5 per ounce. Silver’s volatility was at 17.4% and its RSI level was at 58. Platinum and palladium were at $933.9 and $933.5 an ounce, respectively. These two metals are once again at the same level, so it will be interesting to see which one picks up from here.
Usually, precious metal mining companies are closely related to movements in precious metals. Gold, platinum, and palladium had a down-day on Thursday, April 5, whereas silver had an up-day. Most mining companies followed the trend in silver, while a few turned downward.
Palladium has been the weakest performer among the four precious metals on a YTD (year-to-date) basis. Palladium is more inclined toward its industrial side than its use as a precious metal due to its many industrial uses. Palladium is used as a catalyst in diesel-based engines.
Uncertainty over aftermath of Trump's tariff policy, a weak dollar, pickup in mine production in 2018 and strong demand from India and China make gold a good investment option this year.
Uncertainty or volatility in the markets is increasing. The markets are adjusting for the high volatility phase after a prolonged period of low volatility across markets. The most recent issue fueling volatility is the fear of a trade war.
Is Gold Set to Remain Higher for Longer as Volatility Soars? US consumer prices posted their largest gain in the last 12 months through January 2018, which strengthened expectations of firming price pressures in the US economy for the year. The Federal Reserve’s preferred gauge of inflation—personal consumption expenditure (or PCE) inflation—rose 0.4% in January 2018. This increase followed a 0.1% rise in December 2017, which is its largest gain since January 2017.